GE announced that it has received approval of its request to the Financial Stability Oversight Council (FSOC) for rescission of GE Capital’s designation as a nonbank Systemically Important Financial Institution (SIFI).

The FSOC’s decision reflects the substantial reduction in GE Capital’s size and risk profile and confirms that GE Capital does not pose any threat to U.S. financial stability. GE’s request, filed at the end of March 2016, detailed the changes and dispositions GE Capital has made since being designated as a SIFI in 2013 and, in particular, since GE announced in April 2015 that it would become a more focused digital industrial company by dramatically reducing the size of GE Capital.

“This decision is a result of the transformation of GE Capital into a smaller, safer financial services company that meaningfully contributes to the success of GE’s industrial businesses,” said GE Capital Chairman and CEO Keith Sherin. “We will continue to re-evaluate our capital requirements to reflect our reduced risk profile and right size our organization as we go forward.”

“We have transformed GE by exiting most of financial services, acquiring Alstom, and investing to be a leader in the Industrial Internet,” said GE Chairman and CEO Jeff Immelt. “I am proud of the tremendous execution of the GE Capital team. Going forward, GE Capital will continue to be part of the “GE Store,” supporting the growth of our Industrial businesses.”

With the rescission of its designation as a nonbank SIFI, GE Capital’s activities will no longer be subject to the supervision of the Federal Reserve or subject to the prudential standards set forth in the Dodd Frank Act and its implementing regulations, including minimum regulatory capital and liquidity requirements, submission of annual resolution plans, and regulatory reporting requirements.

“We are highly appreciative of the cooperative working relationship we have had with the Federal Reserve and the FSOC and their expeditious consideration of our SIFI rescission request,” said Sherin.

GE Capital’s non-U.S. operations will remain subject to the supervision of the U.K. Prudential Regulation Authority until GE Capital’s international holding company no longer includes licensed credit institutions, a process that GE Capital is targeting to complete in the first half of 2017.

”We are rapidly shedding the remainder of our overseas assets not aligned with GE and once complete we will go forward with a business portfolio that is properly capitalized and directly aligned with GE’s industrial businesses,” said Sherin.

Since the announcement in April, 2015, GE Capital has signed agreements for the sale of approximately U.S.$180 billion of businesses and has closed approximately U.S.$156 billion of those transactions. GE Capital plans to have largely completed the process of selling approximately $200 billion of GE Capital businesses not linked to GE by the end of 2016. GE Capital expects to deliver about $35 billion of dividends to GE under this plan and remains on track to pay $18 billion of these dividends to GE in 2016.